The Eco10, the index of quality ideas that it elaborates the Economist, has started the year favored by the last revision of last December, when the selective closed the door again to banks and steelmakers, dismissed electricity and infrastructure, with the outputs of Iberdrola, Ferrovial and ACS, and opted mainly for telecommunications and technology.
Thus, in what we have been exercising, about 2% is recorded against the 0.25% that the Ibex rebounds, its benchmark index, in the same period. An even greater gap if we look at twelve months ago, the performance of the Eco10 is of almost four points higher than the benchmark.
The key factor of this delay is none other than banking, precisely the sector that does not have any representative in the index that is made with the collaboration of about 50 investment firms.
The advance of the selective orange at the start of the year is mainly based on Cellnex, which amounts to 9% from January 1, as well as Indra and Viscofan, which were incorporated into the indicator last December and advanced 7% in this period.
On the contrary, the values that are most penalizing the portfolio are MoreMobile and CIE Automotive, with 4% setbacks.
By fundamental, the renewed portfolio has, on average, an EV / ebitda ratio (the value of the company, understood as the sum of capitalization and its debt, in relation to its gross profit) for the next year that is close of the nine times for this year, which represents a 17% discount against the Ibex ratio, which stands, on average, at ten times.
On the other hand, the estimate of profit for these ten quoted from the Eco10 will double, on average, earnings growth for the 2019-2021 period, compared to the 38% expected for the Spanish indicator and which is also motivated by the distortion effect produced by the forecasts for the Catalan telecommunications tower company Cellnex and the operator MásMóvil.
Likewise, half of the values of the Eco10 show a purchase recommendation by FactSet consensus analysts